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The feed-in tariff (FIT) for photovoltaic (PV) installations is
to be further reduced, following the publication of a report
showing that the investment cost of PV projects has decreased by
more than 10%.
This change follows just three weeks after the State Energy and
Water Regulatory Commission announced a FIT decrease of more than
50% for PV installations, using new powers under renewable energy
laws coming into force on 17 July 2012.
The SEWRC report contains an analysis of PV module prices and
the cost of PV plants already in operation. It shows that the
current price of PV modules varies between 0.5 and 0.7 EUR/W,
depending on the capacity installed and volume of supply.
Most PV modules used in Bulgaria come from China. The SEWRC data
has been compared with data on PV installations across Europe (held
on Europe-Solar.de) and, on the assumption that PV modules
represent 50-60% of the overall investment costs for each PV plant,
indicate that the cost of building PV plants has dropped
significantly.
Other factors determining the FIT have been left unchanged by
SEWRC, namely:
- 2% inflation
- 7% average rate of return
- 14.84% annual utilisation factor 1300 hours)
- 20 year useful life of the assets
- c.1.3 EUR cents/kWh operation and maintenance costs
Based on this, SEWRC is planning to reduce the current FIT for
PV plants, to the following levels based on installed capacity:
- 381.18 BGN/MWh (up-to 5 kWp rooftop and
façade)
- 289.96 BGN/MWh (5-30 kWp rooftop and façade)
- 226.87 BGN/MWh (30-200 kWp rooftop and façade)
- 206.34 BGN/MWh (200-1,000 kWp rooftop and
façade)
- 193.42 BGN/MWh (PV plants up to 30 kWp)
- 188.10 BGN/MWh (PV plants from 30-200 kWp)
- 171.37 BGN/MWh (PV plants from 200-10,000 kWp)
- 169.85 BGN/MWh (PV plants above 10 kWp)
If these reduced FITs are introduced for PVs in Bulgaria, they
are likely to stop any development in the sector for the
foreseeable future.
This article was written for Law-Now, CMS Cameron
McKenna's free online information service. To register for
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Law-Now information is for general purposes and guidance
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give professional or legal advice. All Law-Now information relates
to circumstances prevailing at the date of its original publication
and may not have been updated to reflect subsequent
developments.
The original publication date for this article was
24/07/2012.
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